A day after SBI decided to link its short-term loans and large savings deposits rates to the repo rate, chairman Rajnish Kumar said loans and deposits below ₹1 lakh will continue to be linked to the present MCLR to protect retail customers from market vagaries.
In a first, the lender said on Friday that from May 1 it would link its savings accounts with deposits over ₹1 lakh and all cash credit accounts and overdrafts or short-term loans with limits above ₹1 lakh to the repo rate. “The category we have linked to the external benchmark is the best category — all cash credits and overdrafts above ₹1 lakh. Here also, for accounts with ₹1 lakh and below, we’ve kept out of the purview as we believe retail customers should not be forced to suffer from the market vagaries,” he said.
